Delek US Holdings Reaches New 1-Year Low Following Analyst Downgrade

On Thursday, shares of Delek US Holdings, Inc. (NYSE:DK – Get Free Report) fell to a new 52-week low during trading. This decline was triggered by an announcement from Wells Fargo & Company, which revised their price target for the stock from $17.00 down to $15.00. Currently, Wells Fargo has given the stock an underweight rating, suggesting it may not perform well in the near future.

At one point in the trading session, Delek US shares traded as low as $15.09 before closing at $15.14. The stock had a trading volume of approximately 3,000,718 shares, down from a previous close of $16.40.

In addition to Wells Fargo, other analysts have provided recent evaluations of Delek US. Wolfe Research recently upgraded their rating from “underperform” to “peer perform” on January 3rd. Similarly, on December 16th, Mizuho set a new price target decreasing it from $26.00 to $25.00, while maintaining a “neutral” rating. On December 10th, JPMorgan Chase & Co. adjusted their price objective for the stock upwards from $21.00 to $22.00, retaining a “neutral” stance on the company. Overall, five investment analysts have assigned sell ratings, while six have given it hold ratings. According to data from MarketBeat.com, the consensus rating stands at “Hold,” with an average price target of $20.90.

Institutional Investors' Activity

Recently, several institutional investors have altered their positions in Delek US. River Road Asset Management LLC raised its stake by 1.1% during the third quarter, now holding 4,100,268 shares valued at approximately $76.88 million after adding 45,949 shares. Ion Asset Management Ltd. boosted its shares by 16.5% in the fourth quarter, resulting in ownership of 3,455,000 shares worth $63.92 million after acquiring an additional 488,509 shares. Victory Capital Management Inc. also increased their holdings by 17.2% in the third quarter, owning 3,279,590 shares valued at $61.49 million following their purchase of 480,614 shares. Moreover, State Street Corp raised its position by 8.0%, bringing its total to 3,019,307 shares with a value of $56.61 million after purchasing an extra 223,110 shares. Rubric Capital Management LP is another notable institutional investor that recently acquired a new stake in Delek US worth about $37.50 million. Overall, institutional and hedge fund investors control around 97.01% of the company’s stock.

Stock Performance Overview

Delek US has seen its stock price drop by 7.7%. The company currently shows a 50-day moving average of $18.16 and a 200-day moving average of $18.59. The firm maintains a debt-to-equity ratio of 3.18, a current ratio of 1.04, and a quick ratio of 0.67. Currently, Delek US has a market cap of $956.77 million, a price-to-earnings ratio of -3.12, and a beta of 1.20.

In its latest earnings report released on February 25th, Delek US reported an EPS of ($2.54), which was significantly lower than the consensus estimate of ($1.53) by $1.01. The firm's revenue for the quarter was reported at $2.37 billion, which missed the expected figure of $2.58 billion. The company experienced a stark revenue loss of 39.8% year-over-year and reported a negative return on equity of 28.21% along with a net margin of -2.27%. Analysts predict that Delek US will report -5.5 EPS for the current fiscal year.

Dividend Announcement

Additionally, Delek US recently made an announcement regarding a quarterly dividend payment scheduled for March 10th. Shareholders recorded as of March 3rd will receive a dividend of $0.255, leading to an annualized dividend total of $1.02, which reflects a yield of 6.74%. The ex-dividend date is also set for March 3rd, with the current payout ratio reported at -20.99%.

About Delek US Holdings

Delek US Holdings, Inc. engages in an integrated downstream energy business within the United States, operating through its Refining, Logistics, and Retail segments. The Refining segment specializes in processing crude oil and other feedstocks to produce various gasoline grades, diesel fuel, aviation fuel, asphalt, and other petroleum products for distribution through owned and third-party terminals.

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